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Cashless Car Insurance: Here’s all you need to know

Similar to the cashless claims for health insurance plans, cashless car insurance policies are also offered by most of the insurers apart from the reimbursement options.

Owing to technological changes and the ‘Internet’ era, buying car insurance has become easier than before. Moreover, these days there are lots of options when it comes to both comparing and buying car insurance plans.

Rakesh Goyal, Director, Probus Insurance, says, “Car insurance plays a major role in supporting the insured financially during any accident or unfortunate situations. The buying and claim process has also become significant.” 

He further adds, “Similar to the cashless claims for health insurance plans (which gained a lot of traction), cashless car insurance policies are also offered by most of the insurers apart from the reimbursement options.” 

Cashless car insurance has gained popularity among the people as they could now avail the services without the need to pay from their pockets. Cashless car insurance claims, similar to cashless health insurance claims, are hassle-free as the insurer directly handles the expenses of the car damage.

How does this policy work?

There are specific garages that are tied up with the car insurers, also popularly known as the Network Garages. These garages are authorized by the insurer and are capable of servicing claims for the vehicle of the insured. An insured can get their cars repaired at these garages without paying from their pocket. 

“The repairing cost is borne by the insurer and the claim process is extremely easy and hassle-free. A list of such network garages is often provided by the insurer. In case if one doesn’t have this list handy, he or she can get in touch with the insurer’s toll-free number or other customer support to get details of these garages near the accident spot,” says Goyal. 

If the insured’s car meets an accident that leads to damage or loss of any parts, Goyal says, “then the accidental details need to be shared with the insurance company and then the policyholder must visit the network garage for the damaged car’s inspection.”

How do these garages help you?

These garages repair the insured’s car under the policy terms and coverage mentioned in the policy document and then send the invoice of the repair cost to the car policy’s insurer. The payment is then released from the car insurer to these network garages after a certain level of verification. Goyal adds, “One must, however, note that there would be certain damages or repairs that wouldn’t be covered under this plan. One must ensure that the policy coverage document is read well in advance to understand the coverage of such policies.”

Here is how the cashless car claim works;

Step 1: Inform your insurer in case of any damage to the car

Step 2: Tow and take the car to the nearest network garage or you can take help from the insurer to arrange the same

Step 3: Fill the necessary policy-related documents and share them for cashless repair approvals

Step 4: Post the repair, the invoice is shared with the insurer along with other documents

Step 5: Once these papers are verified, the insurer would release the payment

Benefits of cashless car policies

Industry experts say, this process helps the policyholders to get their cars repaired without having to pay from their pocket and at the same time makes the process easy and quick. Moreover, “the network garages often offer priority in terms of services to the insured and the payment process is convenient for the garages as well. The claim settlement is much quicker than the reimbursement process (which takes around 7 to 10 days),” adds Goyal.  

Additionally, experts say to make sure that their policyholders receive the best possible service insurers tie-up with the finest garage networks which fulfil their criteria of top-grade quality.

Experts say there is no probable risk of fraud during this entire process which makes it all the more reliable as the insurer’s surveyor is directly involved in the claim process from start and the billing is done as per the estimates shared during the start of the repair. 

Goyal points out, “During the claim process, the surveyor might inspect the car and assess the damage. Having said that, during major accidents the surveyor might also want to inspect the area where the accident occurred.”

He further adds, “Note that, the coverage of the damages mentioned under the policy document would be borne by the insurer, any other extra repair expenses need to be paid by the insured i.e. one might have to pay for the agreed deductibles and cost of depreciation.”

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